This note will also soon be appearing on ERI-C.com a research discovery, evaluation and procurement Marketplace.
I was on Forkast News today talking about Dogecoin and the wider risks to retail investors new to using trading apps do take a look
HSI +30pts (+0.1%) 28,963 HSCEI -7pts (-0.06%) 11,086 T/O HK$195.71bn (+30.4% DoD) (But ex placement of HK$51.4b T/O was -3.9% DoD)
Opened flat but selling down with pre market; German PPI stronger than expected and UK employment data slightly better. Auto’s firm but other sectors weak led lower by Utilities. General caution ahead of earnings from Kering, Danone, Atos and Associated British Foods, which presents interim results for Primark, while Rio Tinto releases a first-quarter operations review.
British American Tobacco very weak and leading a broad decline for tobacco companies after a report that the Biden administration is considering a requirement for reduced nicotine content in all cigarettes sold in the U.S.
PPI Mar +0.9% MoM vs +0.7% Feb (F/cast was +0.4%)
PPI Mar +3.7% YoY vs +1.9% Feb (F/cast was +3.1%)
Claimant Count Change Mar 10.1k vs 86.8k Feb (F/cast was +150k)
Employment Change Mar -73k vs -147k Feb (F/cast was -120k)
Average Earnings (Inc Bonus) Mar +4.5% vs +4.8% Feb (F/cast was +4.5%)
Average Earnings (Ex Bonus) Mar +4.4% vs +4.3%Feb revised (F/cast was +4%)
Unemployment Rate Mar 4.9% vs 5% Feb (F/cast was 5.1%)
Opened in Asian time Dow +35pts S&P +0.04% and NDX flat but have fallen and now Dow -155pts S&P and NDX -0.4%.
AHEAD Redbook, API Crude Oil Stock Change
Earnings Johnson & Johnson, Travelers, Procter and Gamble, Netflix, Abbott Labs, CSX, Lockheed Martin, Intuitive Surgical, Tenet Healthcare, Philip Morris, Northern Trust, Fifth Third, KeyCorp, Comerica
CSI 300 closed -4pts (-0.1%) @ 5,083
CSI300 Traded in a tight range. Having opened lower as the PBOC left Loan Prime Rates unchanged as expected, it worked higher in choppy trading going into lunch. PM opened higher and tested to 5,120 in early PM trading before trending lower into the close. Connect Flows showed users were net sellers of A shares.Investors cautious expecting more tightening from the PBoC and watching for sound bites from the Boao Forum.
Leaders were consumer sectors with liquor and dairy industry performed strongly.
Laggards were chips, digital currency, and shipping sectors; reflecting the concerns about further clampdowns on crypto and possible slowing of exports.
Shanghai Comp -5pts (-0.1%) @ 3,473
Shenzhen Comp -16pts (-0.1%) @ 14,102
ChiNext Comp -7pts (-0.2%) @ 2,967
Loan Prime Rate 3.85% unchanged
Loan Prime Rate 4.65% unchanged
China's soybean imports from Brazil -85% YoY to 315,300 tons in March, data from General Administration of Customs of the PRC showed.
Meanwhile, China imported 7.18 million tons of soybeans from the United States, 3.2 times higher year-on-year.
In his themed speech, Chinese President Xi Jinping revealed that China will actively forge multilateral partnerships regarding trade and investment.
With full rollout of the Foreign Investment Law and complementary rules, Beijing will continue to scale down the negative list for foreign investment access, and propel the Hainan Free Trade Port buildout as well as new system building for a higher-level open economy.Chinese President Xi Jinping said the country is opening up step by step and fostering closer regional ties by improving alongside Asia and moving forward with the world.
International issues shall be handled upon open discussions while every country shall take part in the decisions for the global future, accentuated Xi. Any "wall-building" or "decoupling" action will do no good to economic and market principles.He also said “However strong it may grow, China will never seek hegemony, expansion or a sphere of influence, nor will China ever engage in an arms race,” Mind you, in the past; his words and actions have diverged; like not militarising the South China Sea Islands.He also claimed hat China is a champion for globalization and the multilateral trading system, but said that international rules should not be set by just one or a few nations.
Also at the Forum HKSAR Chief Executive Carrie Lam said Hong Kong had tided over grave economic waves in the past two to three years. On one hand, the city's exports and imports had been undermined amid China-US trade spat from end-2018. On the other hand, Hong Kong had witnessed a year-long social unrest beginning mid-2019, followed by the global Covid pandemic. The worst seemed to be over at the moment, she projected Hong Kong's economic growth at around 3%-5% this year.
Pre market opened @ 28,963 -143pts vs -78pts ADR’s
Weakness in Ecommerce, resources and travel names but Autos +VE Chenming Paper +8% on the open.
HSI initially tested lower but then rallied sharply back to flat, eased back but then worked higher into the green but was flat at lunchtime. PM opened higher and tested 29,200 in the first 45mins but then eased back and traded around with a small uptick going into the close.
HONG KONG DATA
The Centre for Health Protection reported 8 new covid cases (vs 12 cases Monday) 4 Local Cases with 1 Pending Analysis. 2 were returners from mainland China.
Short Selling Tuesday 8.6% vs 16.4% Monday
Top Shorts Sino BioPharm (1177) 54%, Bud Apac (1876) 36%, BankComm (3328) 33%, Bank Of China (3988) 29%, Ping An (2318) 27%, Wuxi Bio (2269) 24%
AFTER MARKET NEWS
SUNLIGHT REIT (00435.HK) released the operational statistics of Sunlight REIT for the third quarter of the financial year 2020/21. At 31 March 2021, the occupancy rate of Sunlight REIT’s portfolio was 92.7% as compared to 91.5% at 31 December 2020.
BABA-SW (09988.HK)'s Fliggy announced the launch of domestic flight ticket blind boxes at RMB66 each during 20-22 April. After picking the departure location, each user can draw a blind box for a flight ticket with random destination and date of departure (slated for the coming three to 30 days). On another note, Fliggy mentioned the tour and hotel bookings for the May Day holiday had burgeoned by over 11 times YoY on the platform.
China will keep widening the business scope for foreign financial institutions, on top of the foundation of pre-national treatment and negative list management, PBOC Governor Yi Gang was quoted as saying by Securities Times.
DBS Group, Mitsubishi UFJ (MUFG), OCBC and STANCHART (02888.HK) are among suitors for parts of Citigroup's consumer business in Asia, Reuters citing people with direct knowledge of the matter.
EDVANTAGE GROUP (00382.HK) generated RMB554 million in interim revenue ended February 2021, up 32.5% yearly and representing roughly 44% of RMB1.25 billion in full-year target. The group started consolidated Urban Vocational College of Sichuan and Urban Technician College of Sichuan, which had been acquired last year, into its statements from January 2021, disclosed CEO Liu Yi Man, adding that she is confident of meeting the full-year target.
TENCENT (00700.HK) will shower RMB1-billion "WeChat Pay City Vouchers" during the 2nd Session of May 5th Shopping Festival in Shanghai, revealed Xin Jianhua, the General Manager of Government Cooperation Center for WeChat Pay of TENCENT. WeChat Pay will mobilize more than a hundred of brands and almost tens of thousands of outlets online and offline in Shanghai, whereas citizens can obtain vouchers through the Mini Program "WeChat Pay City Vouchers" from merchants like JD, Carrefour and Starbucks.
China Securities Regulatory Commission announced that Guangzhou Futures
Exchange had officially opened yesterday, celebrating the fifth futures exchange in the second largest economy. HKEX (00388.HK) had in early-February announced acquisition of 7% stakes in Guangzhou Futures Exchange.
During the first quarter of 2021, China's production volume of new energy vehicles and integrated circuits rose 3.1 times and 62.1%, according to Minister of Industry and Information Technology.
It is global industrial chain's smooth cooperation that could ease tight situations faced by the semiconductor sector worldwide, opined Huang Libin, MIIT's spokesperson and director general of MIIT's Performance Inspection and Coordination Bureau. Regarding recent auto chip shortages, MIIT has organized carmakers and chipmakers to prepare a manual for matching semiconductor supply with demand in auto sector, which will further unclog information channels and build a platform for bilateral exchange and collaboration.
*E-COMMERCE WEAK on fund-raising concerns as MEITUAN (3690 HK +1.5%) raised $6.59b by pricing its shares at $HK273.80 each as part of a US$10b equity and stock sale. The company sold 187m shares at HK$273.80 each in the deal finalized Tuesday, a 5.3% discount to Meituan's closing price of HK$289.20. The capital raising includes a $3 billion CB plus a $400m placement to TENCENT (700 HK-0.7%), its biggest shareholder, to take the combined deal size to $10b. The cash will be used to help fund the research and development of autonomous vehicle and drone delivery services, a term sheet for the deal said.
ALIBABA (9988 HK -1.6%) JD (9618 HK -1.1%) NTES (9999 HK -0.6%) BAIDU (9888 HK- 2.6%).
*TECH & COMPONENTS WEAK ahead of tonight's APPLE Spring product launch event, which it cancelled last year's due to covid as traders lock in recent gains The highlight is expected to be the arrival of new iPads.
AAC (2018 HK -2%) TRULY (732 HK -2.3%) HUA HON (1347 HK -6%) BYDE (285 HK -2.3%).
*SPORTSWEAR STRONG after LI NING (2331 HK +3.7%) said retail sell-through percentage of Li-Ning point-of-sales, excluding Li-Ning Young, for the overall platform increased by the high-eighties on a year-on-year basis. In terms of channels, its offline channel registered growth in the low eighties. Its retail channel increased in low-nineties and its wholesale rose by low-eighties, and the e-commerce virtual stores business registered around 100% growth.
ANTA (2020 HK +1.6%) DONGXIAN (3818 HK +1%).
*CHINA PROPERTY WEAK by the property managers sector after it had rallied yesterday on the launching of the Hang Seng Property Service and Management Index, a benchmark to reflect the performance of the 30 largest property management and related services companies in Hong Kong.
GREENTOWN SER (2869 HK -1.6%) POLY PROP SERV (6049 HK -1.8%) S-ENJOY (1755 HK -2.%) FIRST SERVICE (2107 HK -4.2%).
CHINA TOWER's (788 HK -2.5%) announced net profit in the first quarter +16.7% YoY
to 1.69b yuan.
UNION MED HEALTHCARE (2138 HK +4.5%) is to sell 29.64m shares to NEW WORLD DEV (17 HK) chief executive Adrian Cheng and private investment fund Aspex at HK$7.80 apiece. The net proceeds of HK$231m will be used for the expansion of the clinic network in HK and the Greater Bay Area, mergers and acquisitions and general corporate purposes, according to a UMH's exchange filing.
Initially sold down to around the 7,040 level and traded around that level until about 1:30pm after which it drifted lower to close -48pts (-0.7%) @ 7,018
RBA left rates unchanged and reaffirmed their commitment to maintaining highly supportive monetary conditions until at least 2024. The board also remains committed to the 3-year government bond yield target of 10 basis points. It added that the second $100 billion government bond purchase program will start next week. Regarding CPI inflation, it is expected to rise temporarily because of the reversal of some COVID-19-related price reductions. On rising housing prices, the bank said it will monitor trends in borrowing carefully and it is important that lending standards are maintained.
Nikkei opened lower at 29,356 (-329pts) with concerns about further emergency measures in Tokyo and Osaka. Then after some initial selling traded around the 29,150 level into lunch. After lunch drifted slightly before trading sideways to close -585pts (-2%) @ 29,100
Topix traded in a similar pattern to close -30pts (-1.6%) @ 1,926DataTertiary Industry Index Feb +0.3% vs -1.7% Jan (F/cast was -0.1%)
Kospi opened flat but trended higher to 3,215 which was the first resistance around 11am and pulled back before moving higher and pushing through 3,215 to 3,220 around midday. It failed to break above and eased back before retesting to close +21pts (+0.7%) @ 3,220
Kosdaq saw initial weakness and sold down to 1,025 level in the first 30 minutes. Then worked back into the green by 11am and then worked slightly higher to 1,030 level and then traded sideways until the last 15 minutes when it click ticked higher to close +2pts (+0.2%) 1,032
Tomorrow pre market we get PPI data
opened lower but rebounded to yesterday’s closing level in the first hour and then traded around that level for the rest of the day to close +60pts (+0.4%) @ 17,324
Data due after market
Export Orders Mar (Feb was +48.5% YoY F/cast is +37%)
Northbound RMB 41,551m Sell 20,435m : 21,116m Buy
Southbound HK$ 14,721m Sell 6,639m : 8,082m Buy
Northbound RMB 50,048m Sell 25,613m : 24,435m BuySouthbound HK$ 16,882m Sell 6,467m : 10,415m Buy
BABA (09988.HK) -1.6%
MEITUAN (03690.HK) +1.5%
HKEX (00388.HK) +1.5%
TENCENT (00700.HK) -0.7%
PING AN (02318.HK) +0.4%
AIA (01299.HK) +0.1%
CCB (00939.HK) unchanged
HSI & HSCEI Constituents on Move:
MENGNIU DAIRY (02319.HK) -4.8%
HAIDILAO (06862.HK) +3.9%
NONGFU SPRING (09633.HK) +3.7%
HANSOH PHARMA (03692.HK) -3.7%
ENN ENERGY (02688.HK) -3.3%
BANKCOMM (03328.HK) +1.2%, hitting new high
HSMI & HSSI Constituents on Move:
YUHUA EDU (06169.HK) +13.2%
SIHUAN PHARM (00460.HK) +11.9%
SH PHARMA (02607.HK) +2.2%, hitting new high
MARKET HOURS NEWS.
The High People's Court of Guangdong Province for the first time published the top-ten cases busting unfair internet competition and monopoly. For instance, competition and order in online game and video game live-streaming markets had been regulated following Huaduo's lawsuit against NTES-S (09999.HK)'s alleged market dominance abuse.Another case involved Weiyuanma's allegation of TENCENT (00700.HK)'s abuse of its dominant market position.
The Court also mentioned the unfair competition litigation lodged by Shenzhen Jingying Brand Firm against BIDU-SW (09888.HK)
Chinese Premier Li Keqiang inspected the Business & Innovation Centre for China-Europe Cooperation (CCEC) in Chengdu, which has taken the initiative to help with the country's opening-up strategy and has wooed over 170 world-renowned institutions and corporations. CCEC will not only be geared towards Europe, but will also seek global partnership for a greater open and collaborative platform and strive to be the world's biggest cooperation hub, Li added.
The Guangdong police have detained several people over alleged illicit fuel trading, including two senior management members at BP's China joint venture, Reuters citing insiders. This came after Guangdong had launched a probe into illicit light cycle oil (LCO) trading in February. China's LCO imports almost doubled last year as traders were evading tax by blending imported LCO into diesel.
RK Properties announced at a news conference that it will possibly issue the price list for South Land at Wong Chuk Hang Station, a property it jointly developed with MTR CORPORATION (00066.HK), before this weekend. Show flats may be available to the public once the price list is unveiled.
China's oil imports from Saudi Arabia surged 8.8% yearly to 7.84 million tons in March, representing 1.85 million barrels per day, which was behind 1.94 million bpd in February, data from China's General Administration of Customs showed. Saudi Arabia remained China's biggest oil supplier for the 7th straight month.
The European Union is stepping up incentives for investments from Taiwan, especially semiconductor firms, said Filip Grzegorzewski, Head of European Economic and Trade Office, citing the worldwide chip shortage that has hit auto makers like Volkswagen.
MINLIST's Initial Understanding: There has been no violation of China's Anti Monopoly Law by the e-commence joint venture between MINLIST (600058.SH) and Alibaba during their cooperation, National Business Daily citing MINLIST's preliminary understanding. The company has not committed any behavior undermining the interests of customers, consumers and investors.
Governments of Hong Kong and Singapore may revive the "air travel bubble" scheme in May, according to reports. These governments will continue to carry out the scheme, being set to unveil the outline plan in the next few days despite recent emergence of a mutant Covid strain in Hong Kong's community, SCMP citing sources.
PayPal (PYPL.US) plans to create a local wallet in China focused on cross-border payments, rather than rivalling with Alipay and WeChat Pay for the domestic market.
Expedia announced new direction in brand positioning today in anticipation of post-vaccination travel demand. After months of conducting deep customer research to understand and address critical traveller pain points, the new positioning marks a pivotal moment for the brand. At the heart of the rebrand is a refresh of Expedia’s platform experience across its award-winning mobile app and more than 70 websites. The new home screens reflect a clear and simple layout, with product features that will empower travellers to build a complete trip that suits their needs and interests, bringing together multiple trip elements seamlessly.
MEITUAN-W (03690.HK) has been developing unmanned delivery for its takeaway, instashopping and other core operations since 2016, leveraging tech advantages to ease pressure on delivery riders. The group completed 150,000 flight tests under relevant civil aviation requirements in 2020, while accomplishing the first trial flight mission serving real users in Shenzhen in January 2021. MEITUAN-W's unmanned drone delivery orders have exceeded 1,000 as of mid-April 2021.
The government of New South Wales is set to buy back the mining license granted to CHINA SHENHUA (01088.HK) at less than AUD200 million, Australian press reported Since 2008, CHINA SHENHUA has been trying to develop the AUD1 billion Watermark coal mine in the Hunter Valley north of Sydney, but farmers have opposed the mine. Meanwhile, China's ban on Australian coal imports and the deteriorating price outlook have impacted the mine's value.
KARRIE INT'L (01050.HK) announced a possible spin-off and separate listing of the real estate business of the Group on the Main Board of the Stock Exchange by way of introduction. The Company has not yet received an approval from the Stock Exchange to proceed with the Possible Spin-off and the details of the Possible Spin-off have yet to be finalized.
Citigroup in its report predicted Macau GGR to have reached MOP5.05 billion during the first 18 days of April, implying a daily run-rate of MOP300 million over the last week. The broker revised up April GGR forecast to MOP8 billion from MOP7.5 billion.
EDVANTAGE GROUP (00382.HK) announced interim results ended February 2021. Net profit was RMB165 million, up 12% yearly. EPS equaled 16.03 fen. Interim. DPS was HK5.5 cents, as compared with HK4.9 cents in the corresponding period of the previous year.
TENCENT (00700.HK)'s Tencent Cloud today announced that it has joined forces with Grafana Labs, the company behind the open and composable observability platform built around the Grafana open source technology for dashboards and visualization, to provide cloud users all over the globe with the Tencent Cloud Monitor Grafana App, a plugin application which is an efficient and easy-to-use platform to quickly monitor and integrate metrics and data. Tencent Cloud has integrated Grafana to its platform, allowing users to access their monitoring data sources via a custom dashboard with a Tencent Cloud API key, and to share access safely and securely. Customers can also choose to embed Tencent Cloud monitoring graphs into their Grafana dashboards for multi-cloud management, in both the open source Grafana and commercial Grafana Enterprise deployments.
Russia's Gamaleya Institute and the Russian Direct Investment Fund (RDIF) said the Sputnik V vaccine was 97.6% effective against COVID-19, citing data from 3.8 million subjects. The effectiveness rate was above the 91.6% reading unveiled in The Lancet earlier this year.Volvo Cars and SSAB inked a cooperation agreement to research on, develop, mass-produce and commercialize the world's first fossil-free steel vehicles. Volvo planned to start using steel concept cars and components made by SSAB using hydrogen starting from this year to achieve its carbon neutrality goal in 2050.
HSBC HOLDINGS (00005.HK) announced an interim dividend for 2020 of USD0.15 per ordinary share, payable on 29 April 2021 to holders of record on 12 March 2021 on the Principal Register in the United Kingdom, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register. Dividends payable in cash in Hong Kong dollars or sterling were converted from United States dollars at the forward exchange rates quoted by HSBC Bank plc in London at or about 11.00 am on 19 April 2021. Accordingly, the cash dividend payable on 29 April 2021 will be: USD0.15 per share; approximately HKD1.165354 per share; or approximately GBP0.107923 per share.
Overnight HIBOR last posted at 0.03595%, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.09679%, marking a 1-month low.
BABA-SW (09988.HK)'s Alibaba DAMO Academy has rolled out Pre-training for Language Understanding and Generation (PLUG) with a parametric scale up to 27.0 billion, Chinese media reported. PLUG displayed outstanding performances in novel imitation, poem generation and intellectual Q&A.
Futu Holdings Limited (FUTU.US) announced planned offering of 9.50 million American depositary shares (ADSs), each representing eight Class A ordinary shares of the Company, with BofA Securities and Haitong International Securities as its joint bookrunners therefor. The Company would grant the underwriters in the ADS Offering a 30-day option to buy an additional 1.425 million ADSs in maximum.
WULING MOTORS (00305.HK)'s Liuzhou Wuling Automobile Industry showcased its self-developed hybrid power system at the Auto Shanghai's car exhibition. Capable of reducing fuel consumption by more than 30%, the engine meets the new Chinese standard for fuel limitation.1
Q21 global smartphone shipment hit 340 million units, up 24% yearly, the fastest growth since 2015, Strategy Analytics wrote in a report. During the quarter, Samsung stayed the largest vendor with 77 million units, followed by Apple 57 million units and XIAOMI-W (01810.HK) 49 million units.
Didi Chuxing has recently tested out the self-developed e-commerce function "Today's Hot Items" on its app, reported Chinese media. Without pick-up service, Didi's merchants will deliver the goods directly to customers. The feature was said to be launched to follow in the footsteps of MEITUAN-W (03690.HK)'s Tuanhaohuo and Pinduoduo (PDD.US)
HENGTEN NET (00136.HK) announced the in-depth cooperation between its Pumpkin Films and Tencent Video, allowing subscribers of Pumpkin Films to gain access to an extensive number of Dramas and Movies under the exclusive copyright of Tencent Video.
The partnership will enable the Group to fully leverage and integrate platform resources.
GCL-POLY ENERGY (03800.HK) announced unaudited annual results ended December 2020. Loss was RMB6.254 billion, against RMB111 million in a year ago's profit. Trading in the shares of the Company on the Stock Exchange has been suspended with effect from 1 April 2021.
PRE MARKET HOURS NEWS
MEITUAN-W (03690.HK) announced top-up share placing for US$6.6-billion net proceeds and convertible bond issue to raise over US$2.98 billion. The company intends to place roughly 187 million class B shares at a placing price $273.8 each, representing roughly 5.3% discount to the closing price $289.2 yesterday.
STANCHART (02888.HK) plans to recruit roughly 1,000 workers in the Greater Bay Area, ranging from sales to public relation segments, Anthony Lin, the bank's CEO of Greater Bay Area, told Bloomberg. The lender targets two-time the revenue growth from the GBA within 4-5 years, furthered Lin.
MINLIST (600058.SH) announced that the State Administration for Market Regulation had decided to form an investigation into Long Teng Digital Technology, the company's joint venture with BABA-SW (09988.HK) -3.800 (-1.638%) Short selling $871.48M; Ratio 19.179% , as the JV's trading may have constituted business operator's unlawful concentration.
CSRC To prevent massive foreign capital inrush and exodus, China Securities Regulatory Commission (CSRC) will take precautions with means of deterring such fund flows from triggering market instability, said Vice Chairman Fang Xinghai at the Boao Forum for Asia.
GUANGDONG INV (00270.HK) announced the acquisition of an aggregate of 53% of the total registered capital of Jiacheng Environmental Engineering from two independent third parties, involving an aggregate amount of no more than RMB3.97 billion.
XIAOMI-W (01810.HK) disclosed that on 19 April, it had repurchased at the Stock Exchange 7.40 million shares, involving roughly $197 million.
NEXT DIGITAL (00282.HK) announced that it entered into a non-legally binding MOU with an independent third party in relation to the Proposed Disposal of the entire issued share capital of Amazing Sino, which holds various assets including the Group’s business of Taiwan Apple Daily and a property in Taiwan. The statement stressed that the Proposed Disposal may or may not proceed.
CNBM (03323.HK) issued a positive profit alert. It is expected that the profit attributable to equity holders of the Group for the three months ended 31 March 2021 will increase by over 200% as compared with that of the same period in 2020. The above expected increase is mainly due to the increase in the sales volume of the Group’s key products.